New Fed chief sends euro zone bond yields higher
Stocks were higher earlier in the day after Federal Reserve Chairman Jerome Powell testified before Congress and appeared to calm one of the market's main worries: that the Fed may get more aggressive about raising interest rates to beat down inflation amid the strengthening job market and economy. Heavy equipment maker Caterpillar (CAT) lost $3.12, or 2 percent, to $151.54 and aerospace giant Boeing (BA) gave back $8.59, or 2.4 percent, to $353.70.
Comments by New York Fed President William Dudley stoked the embers of rate-hike fears during remarks in Sao Paulo, Brazil, where he said four rate hikes - or one more than the Fed has forecast this year - would be gradual.
Gold bounced off session lows after Federal Reserve chair Jerome Powell told the Senate Banking Committee the U.S. central bank did not see evidence of a decisive advance in wages.
Powell noted that while the tax cuts are likely to "add meaningfully to growth" for the next couple years, there so far is no sign of accelerating pressure on prices due to rising wages.
The dollar index is still down 1.5 percent this year, dogged by suspicions that the Trump administration prefers a weaker dollar to mend its bulging trade deficit.
The Standard & Poor's 500 index tumbled 36.16 points, or 1.3 percent, to 2,677.67.
Earlier in the week, Powell's testimony helped send Treasury yields jumping and stocks tumbling when he said that he's feeling more optimistic about the economy.
Those comments rekindled speculation in equity markets over US monetary tightening this year happening faster than expected, feeding concerns that higher borrowing costs could crimp corporate activity and cool economic growth. The yield on the 10-year Treasury note was 2.86% at 10.42am in NY, compared to Tuesday's 2.92% peak.
"In the USA we have at least three rate hikes this year, but in the euro zone, there was some exaggeration about where the inflation was heading so that is now being priced out and yields are moving to the downside", said DZ Bank strategist Daniel Lenz. On the Nasdaq, 1,619 issues rose and 1,207 fell.
Patterson Companies fell to the biggest loss in the S&P 500 after it reported weaker earnings for the latest quarter than analysts expected and said that its chief financial officer was leaving.
Oil prices continue to drop following a report on Wednesday that showed more crude supplies in inventories last week than analysts expected. Shares of the company, which sells dental and animal health products, dropped $7.57, or 24 percent, to $24.01.
Initial U.S. jobless claims (http://www.marketwatch.com/story/us-jobless-claims-fall-to-lowest-level-since-1969-2018-03-01) fell by 10,000 to 210,000 in the seven days ended February 24, the lowest level in almost 50 years. Brent crude, the global standard, dropped 29 cents to $66.23 per barrel.
ASIA'S DAY: Japan's benchmark Nikkei 225 lost 1.6 percent to finish at 21,724.47.
That divergence in rate outlooks also weighed on the euro, which hovered at a six-week low at around $1.2173. Hong Kong's Hang Seng edged up 0.6 percent to 31,035.98, while the Shanghai Composite edged up 0.4 percent to 3,273.76.
CURRENCIES: The dollar rose to 107.16 yen from 106.99 yen late Tuesday.
Why Neymar's Injury Won't Doom Brazil's Hopes Of Winning World Cup 2018
Brazil's national team doctor, Rodrigo Lasmar, says "it was not a simple fissure in his little toe". But on Sunday he looked to be in tears as he was stretchered off the field at the Parc des Princes.
Warner and Smith keep Aussies in hunt
Then Marsh defended an innocuous ball accounting for turn, but it held its line and took his outside edge to the same position. But there is plenty yet to do. "Kingsmead ( Durban ) is a wicket where if you stop the scoring something will happen".
Putin Warns Russia Has Nuclear Weapons That Can Avoid Defense Systems
An underwater drone armed with a nuclear warhead powerful enough to sweep away coastal facilities and aircraft carriers. In a speech to Russian lawmakers, Putin played a video of an October test launch of the new cruise missile .
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